RBI Invites Banks' Board Of Directors To Address Governance, Ethics Issues Next Month: Report

The in-person meeting is scheduled to be held in two batches, on May 22 and May 29, the report said adding that foreign banks may also be invited to the meeting. 

The Reserve Bank of India has sent invitations to entire boards of banks for an in-person meeting.

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RBI Governor Shaktikanta Das will address the board of directors of public and private sector banks at a conference expected to be held next month. According to a CNBC-TV18 report, the Reserve Bank of India has sent invitations to entire boards of banks for an in-person meeting. A first-of-its-kind meeting is being organised to address issues around governance and ethics, the report said citing multiple people aware of the matter. 

 

The in-person meeting is scheduled to be held in two batches, on May 22 and May 29, the report said adding that foreign banks may also be invited to the meeting. 

 

The RBI Governor will address the board of directors on issues related to governance, ethics, the purpose of boards in relation to the operations of banks, and the expectations of the RBI in terms of supervision, the report said. 

 

Bankers told CNBC-TV18, “Entire boards have never been invited by RBI before. We look forward to it.”

 

Apart from RBI Governor Shaktikanta Das, RBI deputy governors, and executive directors from its Department of Regulation as well as Supervision are expected to be present at the meeting. 

 

 

Meanwhile, it is being reported that the Reserve Bank of India will soon develop a set of rules to govern the declaration of a bank account as fraudulent. According to the Economic Times (ET) report the new rules will give the borrower a personal hearing before they are declared a wilful defaulter.

 

This comes after the Supreme Court directed banks to consult with the borrower before designating their account as fraudulent over a month ago.

 

In its last monetary policy meeting, the RBI headed by Governor Shaktikanta Das announced to keep the policy rate unchanged at 6.5 per cent.  The minutes of the RBI MPC held on April 6 are expected to be released later today.